Canada's Aurora Cannabis boosts stake in Australia-based Cann Group

Reuters Staff

2 Min Read

(Reuters) - Canada’s Aurora Cannabis Inc (ACB.TO) said on Monday it increased its stake in Australia-based Cann Group Ltd (CAN.AX) to 22.9 percent from 19.9 percent, its latest move to expand in the cannabis industry.

Aurora, already Cann Group’s largest shareholder, said it bought the shares at A$2.50 ($1.90) apiece.

Shares of Cann Group ended 4.7 percent higher at A$3.14 on the Australian Stock Exchange on Monday.

Cann Group was the first Australian company to receive a license to research and cultivate cannabis for medical purposes.

Aurora will also invest C$12 million ($9.4 million) in Canadian biotechnology company Radient Technologies Inc (RTI.V). The investment will increase Aurora’s stake in Radient to 19.18 percent from 8.8 percent.

The investments come as Aurora - one of Canada’s biggest cannabis makers - looks to expand ahead of expectations that Canada will legalize the production, sale and consumption of recreational marijuana.

Aurora is also trying to buy medical marijuana company CanniMed Therapeutics Inc CMED.TO, which last week adopted a “poison pill” plan to prevent a takeover.